AB & Ors v British Coal Corporation (Rulings appended) [2007] EWHC 1948 (QB) (13 August 2007)

AB & Ors v British Coal Corporation (Rulings appended) [2007] EWHC 1948 (QB) (13 August 2007)

Department is entitled to simple interest at commercial rate (1% over base) on overpayments made to claimants' solicitors, from date of each overpayment to date of repayment, both under compulsion of court orders (until 21 Dec 2005) and by implied term in March 2005 agreement thereafter. Compound interest is not...

Source-derived case information.

Citation
[2007] EWHC 1948 (QB)
Parties
Claimants: AB & Others; Claimants: Union of Democratic Mineworkers (UDM); Defendants: British Coal Corporation (Department for Business, Enterprise and Regulatory Reform)
Jurisdiction
England and Wales
Judgment Date
13 August 2007
Procedural Posture
High Court Civil Costs/interests Dispute / Post Judgment, Determination of Interest and Procedural Orders
Outcome
Department's entitlement to simple interest on overpayments confirmed; probate cut-off for DOROS claims ordered.
Legal Topics
Interest on Overpayments, Implied Contractual Terms, Court Orders and Restitution, Probate Cut Off in Compensation Schemes
Civil Procedure Restitution Contract Law Interest on Overpayments Implied Contractual Terms Court Orders and Restitution Probate Cut Off in Compensation Schemes

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Parties

AB & Others

Claimants

Union of Democratic Mineworkers (UDM)

Claimants

British Coal Corporation (Department for Business, Enterprise and Regulatory Reform)

Defendants

Procedural Posture

High Court Civil Costs/interests Dispute / Post Judgment, Determination of Interest and Procedural Orders

Legal Issues

  1. 1 Is interest recoverable by the Department on monies overpaid to claimants' solicitors pending final determination of costs?
  2. 2 Should a term for interest be implied into the March 2005 agreement?
  3. 3 What is the appropriate rate and nature of interest?

Ratio Decidendi

Department is entitled to simple interest at commercial rate (1% over base) on overpayments made to claimants' solicitors, from date of each overpayment to date of repayment, both under compulsion of court orders (until 21 Dec 2005) and by implied term in March 2005 agreement thereafter. Compound interest is not recoverable. Probate cut-off for DOROS claims is set at 29 Feb 2008, with a three-month extension for claims re-entering DOROS after dispute resolution.

Court Disposition

Department's entitlement to simple interest on overpayments confirmed; probate cut-off for DOROS claims ordered.

Orders

  • Department entitled to simple interest at commercial rate (1% over base) from date of each overpayment to date of repayment.
  • No entitlement to compound interest.